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Financial recovery is possible after bankruptcy

Many people in Massachusetts may be struggling with overwhelming debt and looking for relief from their situation. However, concerns over the effects of personal bankruptcy on one's creditworthiness in the future may hold people back from taking the next step, despite the debt relief potential offered by a bankruptcy filing. There are ways that people going through bankruptcy can plan ahead to help ensure the success of their filing.

For many across the United States, personal bankruptcy is far from uncommon. In fact, over 700,000 people filed for bankruptcy in 2017. According to federal law, a bankruptcy filing can remain on a person's credit report for up to 10 years, depending on the type of filing that a person makes. However, the full impact of bankruptcy on a person's credit does not need to linger for the entire period. In one study by LendingTree, analysts found that 65 percent of people who filed for bankruptcy had already achieved a credit score of at least 640 only two years after their initial filing.

The speed of financial recovery from bankruptcy can vary, and a person can take action in order to enhance their financial health. Using a secured credit card after the bankruptcy has been discharged can help a person to accumulate positive credit. Signing up for a credit monitoring service can also help people to track their credit score and ensure it continues in an upward direction. Finally, it is important to manage future debt and avoid overspending to keep one's credit healthy in the future.

Personal bankruptcy can be an important step to discharge debt and emerge from an endless cycle of collection calls and insurmountable bills. A bankruptcy lawyer may be able to help a debtor file for bankruptcy and move through the process successfully, discharging their debts and preparing for a new, positive financial future.

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